Defining what the relevant market is: A new method for (digital) antitrust

• Applicant: Professor Dr. Markus Dertwinkel-Kalt
• Subject Area: Economic Policy, Applied Economics ; Economic Theory
• Term: since 2021
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 490725816

In order to decide on antitrust cases, antitrust authorities need to define what the relevant product market is, that is, all products need to be determined that compete in the respective case with each other. Conventional methods of market definition reveal a number of shortcomings and are in particular not well suited to define markets for digital goods. In this project, a new survey-based method for market definition should be developed, tested, and applied to current antitrust cases. The survey method suggested here relies on insights of other economic fields, in particular on insights from decision theory and experimental economics. Unlike existing methods of market definition, the method proposed here does not rely on price changes and is therefore also applicable for zero-price digital goods.

• DFG Programme: Research Grants
• Co-Investigator: Professor Dr. Christian Wey